COSASE forms sub-committee to look into BoU bank closure

KAMPALA – The committee on Commissions, Statutory Authorities and State Enterprises (COSASE) has set up a sub-committee to look into petitions of clients of defunct banks whose properties were sold off by BoU even after they had cleared their loans.

The six-member committee headed by Makindye West MP, Ibrahim Kasozi is to handle residual matters that were referred to COSASE by the previous committee’s leadership led by former COSASE Chairperson, Abdu Katuntu.

While interfacing with officials from Bank of Uganda on Wednesday, Mr. Kasozi said a number of clients with the seven defunct banks mainly from the cooperative bank have lodged in complaints against Bank of Uganda that has still failed to return their mortgages as they closed down the bank.

Other members on the committee include; Medard Lubega Ssegoona (Busiro East), Sheila Mwine (Kiruhura Woman), Stella Kiiza (Kyegegwa Woman), and Nathan Itungo (Kashiri South) with the team having been given a timeline of one month within which to report back to the main committee after establishing the status of properties in question and the conduct of BOU in this matter.

The BoU team led by deputy governor Louis Kasekende had appeared before the Committee to respond to 2017 audit queries among which include issues to do with impairment of amount due from Crane Bank Limited (in receivership), impairment of Bank of Uganda’s capital, non-compliance with the Public Procurement and Disposal of Public Assets (Contracts) Regulations 2014.